12th January 2021

EKF Momentum continuing into 2021

EKF momentum continuing into 2021

AIM-listed point-of-care business EKF Diagnostics Holdings has confirmed that continued strong trading will result in its full-year performance for 2020 being “comfortably ahead of already upgraded market expectations”, with the momentum built up continuing into 2021.

In an update covering the year to 31 December 2020, trading in EKF’s core business in the final quarter was said to have continued to improve significantly.

Ongoing demand for the PrimeStore MTM Covid-19 sample collection device remained strong through to the end of the year and will continue to do so into the first quarter of 2021, the Penarth-headquartered group added.

Following the payment of a £4.6m dividend in December 2020, the earlier investment of £3.8m in Trellus Health, and the proceeds from the sale of Renalytix AI plc shares of £7.7m, the company’s net cash at 31 December 2020 is in excess of £21m.

EKF said it will will pay a dividend again in December 2021 and expects to implement a progressive dividend policy.

With continued strong performance in the core business and a number of indicative orders for PrimeStore MTM for the first quarter 2021 that are likely to be realised, the EKF board was said to be confident that performance for the first quarter of 2021 will be materially ahead of current management expectations, and the first quarter of 2020.

The PrimeStore MTM sample collection device deactivates viruses, bacteria, fungi and mycobacterium tuberculosis allowing safe sample handling and transport, greatly reducing risk of infection. The device, which is owned and created by Longhorn Vaccines and Diagnostics, was invented in 2006 in preparation for a worldwide pandemic.

In August, EKF said demand for the product had led to the creation of a second production line in Penarth.